SME's and Enterprise

Question 1

what is meant by enterprise?

Answer 1

it means having the skill and taking the initiative and the risk to make a business happen

Question 2

what is an SME?

Answer 2

a small and medium sized enterprise, with a workforce with less than 250 employees

Question 3

what are needs?

Answer 3

what people need to survive e.g. food , warmth , shelter

Question 4

what are wants ?

Answer 4

what people desire, what the would like to have e.g. better cloths , technology

Question 5

what are some reasons people start a business?

Answer 5

. to earn income and make profit
. tun a hobby into a business
. use of redundancy money
. to be their own boss
. identified gap in the market

Question 6

what is the importance of SME’s and entrepreneurs?

Answer 6

. creates jobs
. buy products from other business’s
. pay tax on their profits
. introduce new technology
. export goods

Question 7

what are some disadvantages of SME’s ?

Answer 7

. small scale and more likely to fail in times of hardship
. high failure rate of 80%
. smaller budgets

Question 8

what is a business plan ?

Answer 8

a statement that outlines the way in which a business will attempt to achieve its objectives - giving a clear idea of its operation and direction